Loan Modification Q’s and A’s
Everyone is well aware of loan modifications and how they are the number one way for a homeowner to avoid foreclosure and stay in there home. But many homeowners looking for this kind of assistance find the process to be very difficult, frustrating, confusing, and just overall stressful on their daily lives. That’s why it is very important that before you begin this process you are armed with as much information as possible and present your case in a professional matter.
Below we will answer some of the most common questions homeowners have in regards to this process:
Q. What does a loan modification do? Read more
Can a senior citizen get a 30-year loan?
It is against the law to discriminate in giving a long-term loan to anyone due to his or her age. The law also states that anyone who qualifies for a mortgage based on the qualifications set for credit and income is eligible for a mortgage payable in 30 years.
If a person dies while the home is under mortgage, the property passes through probate, and people who inherit the property need to refinance it themselves, or put the home up for sale. The bank or lending institution will take ownership of the property if no heirs are found.
What should I consider when getting a 30-year mortgage? Read more
What’s the difference between a fixed and adjustable rate mortgage?
Many people who are looking to purchase a home are not to familiar with the loan process and are wondering “what is the difference between a fixed rate and an adjustable rate mortgage.”
First off I would like to say that it would be a huge mistake taking on an adjustable rate mortgage(ARM) or commonly called a subprime mortgage. ARM mortgages are offered to borrowers that do not qualify for a regular loan because they have a low credit score (typically under 600). Many people believe that subprime mortgages given between the years 2002-2006 may be the reason the United States is in this mortgage crisis today.
Below listed is the definition of both a fixed rate and adjustable rate mortgage. Read more
Will a loan modification stop foreclosure?
Many homeowners in the United States are having difficulties paying their mortgage due to current financial struggles they are facing. One of the main questions they ask is “Is there someway to stop the foreclosure proceedings?”
Yes! With a loan modification you may be able to bring your defaulting mortgage current once again and possibly achieve a lower monthly payment as well.
If you can afford your home and just not the current loan, you may qualify for a loan modification. Also if you have become delinquent on your monthly payments because of temporary struggles, negotiating a loan modification with your lender will resolve that issue. A loan modification will give you a fresh start and give you a chance to keep the home for you and your family. Read more
Can the lender include late payments into the loan modification?
Homeowners today are struggling paying their monthly mortgage payments due to financial hardships and are wondering “if they can get their late payments and fees included into the loan modification?”
Yes! In most modifications you lender will include your late mortgage payments along with the late fees that occurred as well.
Make sure that your lender is aware that this is your intention. Request when first applying that the deliquent payments be added to the back of the loan. Read more
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